(Reuters) – A U.S. judge allowed Samsung Electronics Co Ltd to pursue claims the iPhone5 infringes its patents on Thursday, while also allowing Apple Inc to add claims that the Samsung Galaxy Note, Galaxy S III and the Jelly Bean operating system violate its patents.
The ruling by U.S. Magistrate Judge Paul Grewal in San Jose, California, was the latest development in a continuing legal war by Apple against manufacturers like Samsung whose products use Google Inc’s Android software.
Representatives for both Apple and Samsung declined comment.
The case is one of two patent infringement lawsuits pending in the U.S. District Court in San Jose by Apple against Samsung. An earlier lawsuit by Apple that related to different patents resulted in a $ 1.05 billion jury verdict against Samsung on August 24.
Apple filed the second lawsuit in February, alleging that various Samsung smartphone and tablet products including the Galaxy Nexus infringed eight of its patents.
Samsung denied infringement and filed a cross-complaint alleging that Apple’s iPhone and iPad infringed eight of its patents.
U.S. District Judge Lucy Koh issued a preliminary injunction against pretrial sales of the Nexus in June. But the U.S. Court of Appeals for the Federal Circuit overturned the sales ban on October 11.
Following the debut of the iPhone on September 21, Samsung sought to add it as an Apple product that infringed its patents. Apple moved likewise to add the Samsung Galaxy Note 10.1, Samsung Galaxy S III and the Jelly Bean operating system in connection with the Galaxy Nexus.
In his ruling Thursday, Grewal said Samsung acted with “reasonable diligence” in asking the court to allow it to add the iPhone 5 to the case.
Apple did not oppose adding the iPhone5. Nevertheless, Grewal warned Apple to “think twice before opposing similar amendments reflecting other newly released products — e.g. the iPad 4 and iPad mini — that Samsung may propose in the near future.”
The case is Apple Inc v. Samsung Electronics Co., Ltd., et al., U.S. District Court, Northern District of California, 12-cv-00630.
(Reporting By Nate Raymond in New York; Editing by Richard Pullin)
A person familiar with the situation tells The Associated Press that Maryland and Rutgers are in discussions with the Big Ten to possibly join the conference in 2014.
The person spoke Saturday night on condition of anonymity because neither the conference nor the schools want to publicly discuss their plans.
ESPN.com first reported that the Big Ten was looking into expanding to 14 teams by adding Maryland and Rutgers.
The person says Maryland would have to be "the first domino to fall," but added that an agreement could be reached as soon as this week for both schools.
The Big Ten has 12 members after adding Nebraska last season.
Maryland is in the Atlantic Coast Conference, which recently added Notre Dame as a member in all sports except football and hockey. Rutgers is in the Big East.
Shawn and Stephanie Grimes’s efforts have cost $200,000 in lost income and savings, but their apps have earned less than $5,000 this year.
ROSEDALE, Md. — Shawn and Stephanie Grimes spent much of the last two years pursuing their dream of doing research and development for Apple, the world’s most successful corporation.
But they did not actually have jobs at Apple. It was freelance work that came with nothing in the way of a regular income, health insurance or retirement plan. Instead, the Grimeses tried to prepare by willingly, even eagerly, throwing overboard just about everything they could.
They sold one of their cars, gave some possessions to relatives and sold others in a yard sale, rented out their six-bedroom house and stayed with family for a while. They even cashed in Mr. Grimes’s 401(k).
“We didn’t lose any sleep over it,” said Mr. Grimes, 32. “I’ll retire when I die.”
The couple’s chosen field is so new it did not even exist a few years ago: writing software applications for mobile devices like the iPhone or iPad. Even as unemployment remained stubbornly high and the economy struggled to emerge from the recession’s shadow, the ranks of computer software engineers, including app writers, increased nearly 8 percent in 2010 to more than a million, according to the latest available government data for that category. These software engineers now outnumber farmers and have almost caught up with lawyers.
Much as the Web set off the dot-com boom 15 years ago, apps have inspired a new class of entrepreneurs. These innovators have turned cellphones and tablets into tools for discovering, organizing and controlling the world, spawning a multibillion-dollar industry virtually overnight. The iPhone and iPad have about 700,000 apps, from Instagram to Angry Birds.
Yet with the American economy yielding few good opportunities in recent years, there is debate about how real, and lasting, the rise in app employment might be.
Despite the rumors of hordes of hip programmers starting million-dollar businesses from their kitchen tables, only a small minority of developers actually make a living by creating their own apps, according to surveys and experts. The Grimeses began their venture with high hopes, but their apps, most of them for toddlers, did not come quickly enough or sell fast enough.
And programming is not a skill that just anyone can learn. While people already employed in tech jobs have added app writing to their résumés, the profession offers few options to most unemployed, underemployed and discouraged workers.
One success story is Ethan Nicholas, who earned more than $1 million in 2009 after writing a game for the iPhone. But he says the app writing world has experienced tectonic shifts since then.
“Can someone drop everything and start writing apps? Sure,” said Mr. Nicholas, 34, who quit his job to write apps after iShoot, an artillery game, became a sensation. “Can they start writing good apps? Not often, no. I got lucky with iShoot, because back then a decent app could still be successful. But competition is fierce nowadays, and decent isn’t good enough.”
The boom in apps comes as economists are debating the changing nature of work, which technology is reshaping at an accelerating speed. The upheaval, in some ways echoing the mechanization of agriculture a century ago, began its latest turbulent phase with the migration of tech manufacturing to places like China. Now service and even white-collar jobs, like file clerks and data entry specialists or office support staff and mechanical drafters, are disappearing.
“Technology is always destroying jobs and always creating jobs, but in recent years the destruction has been happening faster than the creation,” said Erik Brynjolfsson, an economist and director of the M.I.T. Center for Digital Business.
Still, the digital transition is creating enormous wealth and opportunity. Four of the most valuable American companies — Apple, Google, Microsoft and I.B.M. — are rooted in technology. And it was Apple, more than any other company, that set off the app revolution with the iPhone and iPad. Since Apple unleashed the world’s freelance coders to build applications four years ago, it has paid them more than $6.5 billion in royalties.
WASHINGTON — Georgia, Ohio and Wisconsin joined more than a dozen other states on Friday in saying they would not establish health insurance exchanges, while a handful of other states said they would take advantage of an extra month allowed by the Obama administration to make decisions.
The exchanges — online markets where consumers can shop for private insurance subsidized by the federal government — are a centerpiece of President Obama’s health care law.
The administration has been urging states to set up exchanges, as Congress intended. The federal government will create and run exchanges in any state that is unable or unwilling to do so.
Mr. Obama and his health secretary, Kathleen Sebelius, have promised to give states flexibility in carrying out the new health care law and running the exchanges. However, Republican governors said they had not been allowed much latitude to date.
Gov. John R. Kasich of Ohio, a Republican, said Friday that his state “will not run an Obamacare health exchange, but will instead leave that to the federal government to do.”
“Based on the information we have,” Mr. Kasich said, “states do not have any flexibility to build and manage exchanges in ways that respond to unique needs of their citizens.”
Gov. Scott Walker of Wisconsin, another Republican opposed to the health care law, said, “From a philosophical standpoint, I prefer state-run over federal on any day on any subject.” But under the law, Mr. Walker said, “Wisconsin taxpayers will not have meaningful control over the health care policies and services sold to Wisconsin residents.”
For decades, under governors of both parties, Wisconsin has been a national leader in the regulation of insurance.
Caroline F. Pearson, who tracks state developments at Avalere Health, a consulting company in Washington, said it appeared that about 18 states would choose to run their own exchanges, while 10 to 12 would seek partnerships with the federal government, and 18 to 20 would have federal exchanges.
Friday was to be the deadline for states to declare their intentions. But Ms. Sebelius said Thursday night that she was extending the deadline to Dec. 14. In any event, she must decide by Jan. 1 whether states are able to run their own exchanges.
Americans are supposed to be able to start shopping for insurance through exchanges in October 2013. By January 2014, most Americans will be required to have health insurance under the law.
Obama administration officials said they would be ready to run the federal exchanges, but they have not provided any information about their plans or their progress.
Gov. Rick Scott of Florida, a Republican, asked Friday for a meeting with Ms. Sebelius to discuss plans for an exchange. He said he was still analyzing his options, but had not seen evidence that an exchange would lower health costs for Floridians.
Gov. Nathan Deal of Georgia, a Republican, said his state would not establish an exchange. He expressed concern about what he described as “the one-size-fits-all approach and high federal burden imposed on states.”
Other Republican governors, including Jan Brewer of Arizona, C. L. Otter of Idaho, Terry E. Branstad of Iowa, Chris Christie of New Jersey, Tom Corbett of Pennsylvania and Bill Haslam of Tennessee, said they would use the extra time to seek more answers from Washington and feedback from constituents.
In a letter to Ms. Sebelius, Mr. Branstad said his state wanted to create its own exchange, but needed much more information. He included a list of 50 questions and said that unless they were answered, Iowa might have no choice but to opt for a federal exchange.
Many of the questions were about the costs of building and running an exchange. Mr. Otter said he would consult leaders of the Idaho Legislature and make a decision by the new deadline. An advisory committee appointed by Mr. Otter recommended last month that Idaho create its own exchange. But, Mr. Otter said, “I don’t want us buying a pig in a poke.”
Gov. Bev Perdue of North Carolina, a Democrat, said her state intended to join the federal government in establishing a hybrid form of exchange. Ms. Perdue will soon be succeeded by Pat McCrory, a Republican, who will decide what role the state should play.
Heather H. Howard, a lecturer at Princeton University who provides technical help to states as director of the State Health Reform Assistance Network, said the guidance provided by the Obama administration was sufficient for states to make decisions. States like California, Maryland and Washington have made great strides in developing exchanges, she said.
Ms. Howard said that governors might try to use the extra time to negotiate. “They’re feeling their oats and testing the limits of what leverage they have,” she said.
TEL AVIV — With rockets landing on the outskirts of Tel Aviv and Jerusalem on Friday and the Egyptian prime minister making a solidarity visit to Gaza, the accelerating conflict between Israel and Hamas — reminiscent in many ways of so many previous battles — has the makings of a new kind of Israeli-Palestinian face-off.
The combination of longer-range and far deadlier rockets in the hands of more radicalized Palestinians, the arrival in Gaza and Sinai from North Africa of other militants pressuring Hamas to fight more, and the growing tide of anti-Israel fury in a region where authoritarian rulers have been replaced by Islamists means that Israel is engaging in this conflict with a different set of challenges.
The Middle East of 2012 is not what it was in late 2008, the last time Israel mounted a military invasion to reduce the rocket threat from Gaza. Many analysts and diplomats outside Israel say the country today needs a different approach to Hamas and the Palestinians based more on acknowledging historic grievances and shifting alliances.
“As long as the crime of dispossession and refugeehood that was committed against the Palestinian people in 1947-48 is not redressed through a peaceful and just negotiation that satisfies the legitimate rights of both sides, we will continue to see enhancements in both the determination and the capabilities of Palestinian fighters — as has been the case since the 1930s, in fact,” Rami G. Khouri, a professor at the American University of Beirut, wrote in an online column. “Only stupid or ideologically maniacal Zionists fail to come to terms with this fact.”
But the government in Israel and the vast majority of its people have drawn a very different conclusion. Their dangerous neighborhood is growing still more dangerous, they agree. That means not concessions, but being tougher in pursuit of deterrence, and abandoning illusions that a Jewish state will ever be broadly accepted here.
“There is a theory, which I believe, that Hamas doesn’t want a peaceful solution and only wants to keep the conflict going forever until somehow in their dream they will have all of Israel,” Eitan Ben Eliyahu, a former leader of the Israeli Air Force, said in a telephone briefing. “There is a good chance we will go into Gaza on the ground again.”
What is striking in listening to the Israelis discuss their predicament is how similar the debate sounds to so many previous ones, despite the changed geopolitical circumstances. In most minds here, the changes do not demand a new strategy, simply a redoubled old one.
The operative metaphor is often described as “cutting the grass,” meaning a task that must be performed regularly and has no end. There is no solution to security challenges, officials here say, only delays and deterrence. That is why the idea of one day attacking Iranian nuclear facilities, even though such an attack would set the nuclear program back only two years, is widely discussed as a reasonable option. That is why frequent raids in the West Bank and surveillance flights over Lebanon never stop.
And that is why this week’s operation in Gaza is widely viewed as having been inevitable, another painful but necessary maintenance operation that, officials here say, will doubtless not be the last.
There are also those who believe that the regional upheavals are improving Israel’s ability to carry out deterrence. One retired general who remains close to the military and who spoke on the condition of anonymity said that with Syria torn apart by civil war, Hezbollah in Lebanon discredited because of its support for the Syrian government, and Egypt so weakened economically, Israel should not worry about anything but protecting its civilians.
“Should we let our civilians be bombed because the Arab world is in trouble?” he asked.
So much was happening elsewhere in the region — the Egyptian and Libyan revolutions, the Syrian civil war, dramatic changes in Yemen and elections in Tunisia — that a few rockets a day that sent tens of thousands of Israeli civilians into bomb shelters drew little attention. But in the Israeli view, the necessity of a Gaza operation has been growing steadily throughout the Arab Spring turmoil.
In 2009, after the Israeli invasion pushed Hamas back and killed about 1,400 people in Gaza, 200 rockets hit Israel. The same was true in 2010. But last year the number rose to 600, and before this week the number this year was 700, according to the Israeli military. The problem went beyond rockets to mines planted near the border aimed at Israeli military jeeps and the digging of explosive-filled tunnels.
“In 2008 we managed to minimize rocket fire from Gaza significantly,” said Lt. Col. Avital Leibovich, a military spokeswoman. “We started that year with 100 rockets a week and ended it with two a week. We were able to give people in our south two to three years. But the grass has grown, and other things have as well. Different jihadist ideologies have found their way into Gaza, including quite a few terrorist organizations. More weapons have come in, including the Fajr-5, which is Iranian made and can hit Tel Aviv. That puts nearly our entire population in range. So we reached a point where we cannot act with restraint any longer.”
Gazans see events in a very different light. The problem, they say, comes from Israel: Israeli drones fill the Gazan skies, Israeli gunboats strafe their waters, Palestinian militants are shot at from the air, and the Gaza border areas are declared off limits by Israel with the risk of death from Israeli gunfire.
But there is little dissent in Israel about the Gaza policy. This week leaders of the leftist opposition praised the assassination of Ahmed al-Jabari, the Hamas military commander, on Wednesday. He is viewed here as the equivalent of Osama bin Laden. The operation could go on for many days before there is any real dissent.
The question here, nonetheless, is whether the changed regional circumstances will make it harder to “cut the grass” in Gaza this time and get out. A former top official who was actively involved in the last Gaza war and who spoke on the condition of anonymity said it looked to him as if Hamas would not back down as easily this time.
“They will not stop until enough Israelis are killed or injured to create a sense of equality or balance,” he said. “If a rocket falls in the middle of Tel Aviv, that will be a major success. But this government will go back at them hard. I don’t see this ending in the next day or two.”
PUNISHED: Britain‘s High Court ruled Friday that a man had been unfairly stripped of a management position and demoted for saying in a Facebook post that he was opposed to gay marriage.
COURT RULING: The court said the Trafford Housing Trust breached Adrian Smith‘s contract and a judge added that Smith had not done anything wrong. Smith had written on Facebook that gay weddings in churches would be “an equality too far.”
EVOLVING LAW: In Britain, same-sex couples can form civil partnerships that carry the same legal rights marriages do. The government plans to introduce legislation allowing civil marriages as well.
HONOLULU (AP) — Brittney Griner and Baylor were rarely challenged during a 42-game winning streak that included a national title and a quick start to this season.
But the unfamiliar scene of Hawaii and an eager opponent in No. 4 Stanford — keen on avenging a loss in the Final Four — were too much for the top-ranked Lady Bears on Friday, who fell 71-69 to the fourth-ranked Cardinal.
Griner scored 18 of her 22 points in the second half, helping the Lady Bears rally from a 14-point deficit in the first half. Her shot at the buzzer bounced off the rim and Stanford celebrated the victory. It was the Lady Bears' first defeat since losing to Texas A&M in the regional finals of the 2011 NCAA tournament. Baylor went 40-0 last year with no team coming within five points of the Lady Bears.
"You don't ever want to lose. You're in Hawaii, you're not under the normal circumstances of a regular practice schedule. You're enjoying the beach and not having as much time to prepare," Baylor coach Kim Mulkey said. "We played Kentucky and had a quick tunaround to come here. It's a great schedule for us to prepare for another national championship."
Chiney Ogwumike scored 18 points to lead the fourth-ranked Cardinal (3-0), who lost to Baylor in the national semifinals last season by 12 points. Her reverse layup gave Stanford a four-point lead with 22 seconds left, after Joslyn Tinkle broke the tie with a layup with just under 1 minute.
Destiny Williams responded with the first 3-pointer of her career to pull Baylor (2-1) within one.
Toni Kokenis made one of two free throws. Baylor got the rebound and advanced the ball to halfcourt before calling timeout to set up the final play.
Griner caught the ball in the low block and with three players draped on her, the 6-foot-8 star's shot fell harmlessly off the rim setting off a wild celebration by the Cardinal at midcourt.
"We knew where the ball was going — it's a matter if we're able to make the play. It's hard to make a play on Griner," Ogwumike said. "You knew it was going to Griner and she was going to turn around and shoot."
Baylor's run was the fifth-longest winning streak in NCAA women's history. Stanford also ended UConn's NCAA record 90-game run in 2010.
Baylor was the heavy favorite to repeat as champion with their entire starting lineup back from last season. The Lady Bears cruised to an easy 89-51 victory over No. 6 Kentucky on Tuesday before heading to Hawaii for the three-game Rainbow Wahine tournament.
Mulkey said that Baylor wasn't used to playing close games during its streak.
"We didn't respond very well, we got back in the game but we didn't execute some things and we didn't do some things defensively," Mulkey said.
While the Lady Bears returned so much, Stanford was without graduated All-American center Nnemkadi Ogwumike.
The untelevised, afternoon game in Honolulu was played in a mostly empty Stan Sheriff Center, an arena modeled after Baylor's home floor in Waco, Texas.
Baylor had to play the last 35 minutes of the game without preseason All-America guard Odyssey Sims, who strained her hamstring early in the first half.
"You lose your All-American point guard that early in the game, it kind of takes you out of flow of things," Mulkey said.
Without their playmaker, the Lady Bears fell down by 14 points before rallying to 31-29 at the break. Stanford focused on Griner on defense and took advantages of missteps by Baylor on the other end to get second chances and open looks.
Stanford coach Tara VanDerveer said the Cardinal came in knowing they needed to limit Griner and play better than they did in the NCAA tournament loss.
"Our game plan was never let Brittney Griner be one on one," she said. "We were doubling her as hard as we could."
Griner was dominant in the second half, scoring 10 of Baylor's first 12 points and just under half its points for the final half. The Lady Bears gave up on 3-pointers while allowing Griner to carry them, attempting only three after ending the first half 1-for-11.
Baylor took a 55-54 lead with 7:11 left in the game on a layup from Destiny Williams. It was the Lady Bears first since early in the first half. They extended it to 4 points before Stanford rallied back behind Kokenis, who made two free throws and a jumper to tie it at 60.
The game was back and forth until the final minute when Tinkle and Chiney Ogwumike gave Stanford the lead for good.
Chiney Ogwumike was one of four Stanford players to score in double digits. Taylor Greenfield had 16 points, Kokenis had 15 and Tinkle had 11.
Mulkey said it wasn't a well-played game.
"It's been a long time since that bunch lost. I hope they feel like anybody or any competitor feels after a game that you lose," Mulkey said. "I hope they don't forget it and it bothers them."
Griner said the lesson is clear.
"We haven't faced adversity like we did. We'll learn from it," she said.
___
Oskar Garcia can be reached on Twitter at http://twitter.com/oskargarcia .
What might be the last Twinkie in America — at least for a while — rolled off a factory line Friday morning. It was just like the millions that had come before it, golden, cream-filled empty calories, a monument to classic American junk food.
But it is likely to be the last under the current management. After not one but two bankruptcies, Hostess Brands, the beleaguered purveyor of Twinkies, Ho Hos, Sno Balls and Wonder bread, announced plans to wind down operations and sell off its brands.
Since filing for Chapter 11 bankruptcy protection in January, Hostess has been trying to renegotiate its labor contracts in a bid to cut costs. But the talks fell apart, and last week one union went on strike.
The so-called liquidation will probably spell the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. Although the company could theoretically negotiate a last-minute deal with the union, Hostess is moving to shut factories and lay off a large majority of its 18,500 employees.
But Twinkies and the other well-known brands could eventually find new life under a different owner. As part of the process, Hostess is looking to auction off its assets, and suitors could find value in the portfolio.
“The potential loss of iconic brands is difficult,” said the company’s chief executive, Gregory F. Rayburn. “But it’s overshadowed by the 18,500 families that are out of work.”
The company’s current problems stem, in part, from the legacy of its past.
An amalgam of brands and businesses, the company has evolved over the years through acquisitions. In the 1960s and 1970s, the company, then called Interstate, bought more than a dozen regional bakeries scattered across the country. A couple of decades later, it paid $330 million for the Continental Baking Company, picking up a portfolio of brands like Wonder and Hostess.
As the national appetite for junk food waned, the company fell on hard times, struggling against rising labor and commodity costs. In 2004, it filed for bankruptcy for the first time.
Five years later, the company emerged from Chapter 11 as Hostess Brands, so named after its most prominent division. With America’s new health-conscious attitude, it sought to reshape the business to changing times, introducing new products like 100-calorie Twinkie Bites.
But the new private equity backers loaded the company with debt, making it difficult to invest in new equipment. Earlier this year, Hostess had more than $860 million of debt.
The labor costs, too, proved insurmountable, a situation that has been complicated by years of deal-making. The bulk of the work force belongs to 12 unions, including the International Brotherhood of Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.
The combination of debt and labor costs has hurt profits. The company posted revenue of $2.5 billion in the fiscal year 2011, the last available data. But it reported a net loss of $341 million.
With profits eroding, the company filed for Chapter 11 in January. It originally hoped to reorganize its finances, seeking lower labor costs, including an immediate 8 percent pay cut.
The negotiations have been contentious.
The Teamsters, which has 6,700 members at Hostess, said it played an instrumental role in ousting Hostess’s previous chief executive, Brian J. Driscoll, this year after the board tripled his compensation to $2.55 million. The union also hired a financial consultant, Harry J. Wilson, who had worked on the General Motors restructuring.
While highly critical of management missteps, the Teamsters agreed in September to major concessions, including cuts in wages and company contributions to health care. As part of the deal, the union was to receive a 25 percent share of the company’s stock and a $100 million claim in bankruptcy.
“The objective was to preserve jobs,” said Ken Hall, the Teamsters’ general secretary-treasurer. “When you have a company that’s in the financial situation that Hostess is, it’s just not possible to maintain everything you have.”
But Hostess reached an impasse with the bakery union. Frank Hurt, the union’s president, seemed to lose patience with Hostess’s management, upset that it was in bankruptcy for the second time despite $100 million in labor concessions. He saw little promise that management would turn things around.
“Our members decided they were not going to take any more abuse from a company they have given so much to for so many years,” said Mr. Hurt. “They decided that they were not going to agree to another round of outrageous wage and benefit cuts and give up their pension only to see yet another management team fail and Wall Street vulture capitalists and ‘restructuring specialists’ walk away with untold millions of dollars.”
About a month ago, Mr. Rayburn said, the bakers union stopped returning the company’s phone calls altogether. For its part, the bakery union said the company had taken an overly aggressive approach. David Durkee, the union’s secretary-treasurer, said Hostess had given an ultimatum. “They said, ‘If you do not ratify this, we are going to liquidate based on your vote.’ ”
With the company standing firm, the bakery union struck last week, affecting nearly two-thirds of the company’s factories across the country. The Teamsters drivers honored the picket line, further shutting down the operations. The company gave union members until 5 p.m. on Thursday to return to work.
Mr. Rayburn said the financial strain of the strike was too much for the company, which had already reached the limits of its bankruptcy financing. Over the last week, Hostess lost tens of millions of dollars as many customers’ orders went unfilled. And its lenders would not open their wallets one more time.
By Thursday morning, Hostess’s executives were ensconced in the company’s headquarters in Irving, Tex., still hoping that enough employees would return to work to resume production. A small number of workers had already crossed the picket lines that had sprung up at most of the baker’s factories, but more than 10 plants remained well below their necessary capacity.
Mr. Rayburn’s deadline of 5 p.m. passed without either side backing down. Soon after, executives asked the company’s legal advisers to finish the court motions that would begin the liquidation. Papers had been drawn up well before that afternoon.
Around 7 p.m., Mr. Rayburn had his final discussions with the company’s board and his senior managers and made the call to begin winding down.
“We were trying to focus on where people were having success, but I had to make a call,” Mr. Rayburn said.
Major changes erupted at one of the world’s leading health-funding agencies Thursday as it hired a new director, dismissed the inspector general who had clashed with a previous director and announced a new approach to making grants.
Alex Wong/Getty Images
Dr. Mark Dybul, who led the President's Emergency Plan for AIDS Relief, in 2007.
Dr. Mark Dybul, the Bush administration’s global AIDS czar who was abruptly dismissed when President Obama took office, was named the new executive director of the Global Fund to Fight AIDS, Tuberculosis and Malaria.
Dr. Dybul, who was selected over candidates from Canada, Britain and France, was backed by the United States, which donates about a third of the fund’s budget, and by Bill Gates, who helped the fund through a cash crisis earlier this year.
He is respected by many AIDS activists in the United States, though there is some lingering controversy about his time in the Bush administration related to abstinence policies and anti-prostitution pledges imposed by conservative lawmakers as well as concerning strict licensing requirements for generic drugs.
The fund, which is based in Geneva and has given away more than $20 billion since its founding in 2002, has been in crisis for more than a year. Some donors shied away after widely publicized corruption scandals, while others, notably Mr. Gates, said the scandals were exaggerated and increased donations.
Its last executive director, Dr. Michel Kazatchkine, quit in January after the day-to-day management duties of his job were given to a Brazilian banker, Gabriel Jaramillo, who was charged with cutting expenses.
By some accounts, 40 percent of the employees soon left, although Seth Faison, a fund spokesman, said the total number of employees declined by only 8 percent. The fund also dismissed its inspector general, John Parsons, on Thursday, citing unsatisfactory work.
Mr. Parsons and Dr. Kazatchkine had privately clashed. Mr. Parsons’s teams aggressively pursued theft and fraud, and found it in Mali, Mauritania and elsewhere. But the total amount stolen — $10 million to $20 million — was relatively small, and aides to Dr. Kazatchkine said the fund cut off those countries and sought to retrieve the money. The aides claimed that Mr. Parsons, who reported only to the board, went to news outlets and left the impression that the fund was covering up rampant theft.
The fuss scared off some donor countries that were already looking for excuses to cut back on foreign aid because of the global economic crisis.
Mr. Parsons did not return messages left for him Thursday.
Dr. Dybul’s appointment was welcomed by the United Nations AIDS program, the Bill and Melinda Gates Foundation, the Elizabeth Glaser Pediatric AIDS Foundation, Malaria No More and Results.org, an anti-poverty lobbying group. By contrast, Jamie Love, an American advocate for cheaper AIDS drugs who works in Washington and Geneva, said he expected Dr. Dybul “to protect drug companies.”
The fund also announced a new application process, which it said would be faster and focus more on the hardest-hit countries rather than all 150 that received some help in the past.
In an interview, Dr. Dybul said he felt the fund was “on a strong forward trajectory” after changes were put in place in the last year by Mr. Jaramillo, and now would focus on “hard-nosed implementation of value for money.”
Both the President’s Emergency Plan for AIDS Relief and the fund spend billions, but in different ways.
The fund supports projects proposed by national health ministers and then hires local auditors to make sure the money is not wasted or stolen. Pepfar usually gives grants to American nonprofit groups or medical schools and lets them form partnerships with hospitals or charities in the affected countries.
The conventional wisdom is that the Global Fund’s model is more likely to win the cooperation of government officials but more vulnerable to corruption — and also spends less on salaries and travel for American overseers.
Dr. Kazatchkine said he did not expect Dr. Dybul to “Pepfarize” the Global Fund.
“I hope that, after a year of turbulence, the fund finds the serenity needed to move forward again,” he said.
The acting C.I.A. director, Michael J. Morell arrived Thursday for closed-door meetings about the attack that killed four Americans in Libya.
WASHINGTON — The Central Intelligence Agency’s inspector general has started an investigation into the general conduct of David H. Petraeus, who resigned last week as the C.I.A.’s director after admitting to having an affair with his biographer, Paula Broadwell.
The inquiry will focus largely on whether Mr. Petraeus misused the trappings and perquisites of his position, including security details, private jets and special accommodations, to facilitate the affair, a person familiar with the investigation said.
There is no evidence so far to suggest Mr. Petraeus did so, said agency officials, who notified the House and Senate Intelligence Committees of the matter on Thursday. But given the extraordinary circumstances, agency officials thought it prudent to have the inspector general review Mr. Petraeus’s conduct.
“An investigation is exploratory and doesn’t presuppose any particular outcome,” said Preston Golson, a C.I.A. spokesman.
Attorney General Eric H. Holder Jr. said on Thursday that the F.B.I. investigation into a cyberstalking case that revealed the affair concluded that e-mails Mr. Petraeus and Ms. Broadwell exchanged did not violate national security.
Speaking at a news conference in New Orleans to announce a settlement with the oil company BP, Mr. Holder said the White House and Congress were not notified about Mr. Petraeus’s situation until last week because the national security concerns had been allayed.
“As we went through the investigation, we looked at the facts and tried to examine them as they developed,” Mr. Holder said. “We felt very secure in the knowledge that a national security threat did not exist that warranted the sharing of that information with the White House or with the Hill.”
The spotlight will turn to Mr. Petraeus on Friday, when he testifies in closed session to the House and Senate Intelligence Committees — not about his affair, though that may well come up, but mainly about the attacks on the American Mission in Benghazi, Libya.
Mr. Petraeus gave his first interview since resigning, telling Kyra Phillips of CNN that he had never given classified information to Ms. Broadwell and that his resignation had been solely because of their relationship. He said it had nothing to do with disagreements over the attack on the American Mission and a C.I.A. safe house in Benghazi.
Leading administration officials, meanwhile, met privately with lawmakers for a third straight day to explain how the Petraeus investigation was handled and explore its national security implications. Among those appearing before the House and Senate Intelligence Committees were James R. Clapper Jr., the director of national intelligence; Michael J. Morell, the acting C.I.A. director; and Sean Joyce, the deputy F.B.I. director.
After a four-hour closed hearing on Thursday, Senator Dianne Feinstein, a California Democrat who heads the Intelligence Committee, said the panel had reviewed a detailed chronology of the attack on Sept. 11 that killed Ambassador J. Christopher Stevens and three other Americans. It included a video made from a composite of sources, including Predator drone video of the events that night.
Ms. Feinstein said that in addition to meeting with Mr. Petraeus on Friday to hear his account of the attack — as well as an assessment of a visit he made just two weeks ago to the C.I.A.’s station in Tripoli, Libya’s capital — the committee would hold at least three additional hearings on the matter.
“We are in effect fact-finding,” she said.
Ms. Feinstein and the panel’s senior Republican, Senator Saxby Chambliss of Georgia, declined to tell reporters what questions they had asked the witnesses, but Mr. Chambliss and his colleagues said previously they would examine possible intelligence flaws, security lapses and the Obama administration’s handling of the issue.
“Were mistakes made?” Mr. Chambliss said. “We know mistakes were made, and we’ve got to learn from that.”
Earlier in the day, the same administration officials faced tough questioning from members of the House Intelligence Committee.
Representative C. A. Dutch Ruppersberger of Maryland, the committee’s top Democrat, said after the hearing that he was satisfied the F.B.I. had behaved properly in not notifying the White House or lawmakers about the inquiry sooner, in keeping with post-Watergate rules set up to prevent interference in criminal investigations.
